More Gains Seen in India

The nation's equities look set to add to their 20% year-to-date gains, thanks to a new central banker, curbs on gold imports, and lower oil prices.

The delay in the U.S. Federal Reserve's tapering program has served India well. In the interim, the government hired a respected central-bank governor, implemented curbs on expensive gold imports, and enjoyed a drop in oil prices. As a result, stocks have jumped 20% since September and look like they have room to rise even further.

The new Reserve Bank Governor, Raghuram Rajan, has raised long-term interest rates twice in recent weeks, to 7.75%, to rein in inflation, attracted capital from Indians living abroad, and...